New Study Finds Dogecoin Boosts Returns With Minimal Risk

By: coindoo|2025/05/03 00:30:02
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The crypto investment firm found that even a modest 1% allocation to the token—when paired with Bitcoin in a growth-oriented strategy—enhanced overall returns without significantly increasing risk.By testing a variety of portfolio setups, 21Shares discovered that adding Bitcoin and Dogecoin to a traditional 60/40 stock-bond mix lifted average annual returns from 7.25% to nearly 9%. Risk-adjusted performance improved as well, with higher Sharpe ratios and only a slight bump in drawdowns. The key, the report emphasizes, is consistent rebalancing—ideally monthly—to prevent volatility from compounding over time.Why Dogecoin? According to the firm, its relatively low correlation with both traditional finance and the broader crypto market, along with a history of outsized gains, makes it more than just a speculative meme—it acts as a genuine diversifier. .dark-mode .read-more {background-color: #343a40 !important;} READ MORE: Strategy Unveils $84B Bitcoin Buying Plan 21Shares also offered projections for Dogecoin’s possible price trajectory this cycle. In a conservative scenario, if the token grows at 10% annually from its 2021 high of $0.73, it could reach around $0.38 by the end of 2025—more than doubling from today’s prices, but still falling short of a new record.A middle-ground estimate assumes Dogecoin retains a 3% slice of a crypto market that swells to $5 trillion. That would place its market cap at roughly $150 billion, suggesting a price of about $1.The bullish view borrows from historical growth trends. If DOGE repeats its past compounded annual growth rate of 189%—measured from the 2018 low to the 2022 cycle bottom—it could climb as high as $1.42. That outcome would require strong retail momentum, broader utility, and further integration into major platforms, such as Elon Musk’s X.For investors willing to take a structured and disciplined approach, 21Shares argues that Dogecoin may be more than a passing internet fad—it might just be a smart risk.The post New Study Finds Dogecoin Boosts Returns With Minimal Risk appeared first on Coindoo.

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